Market Watch

More Price Increase Throughout the Ink, Pigment8200;Industries

May 17, 2011

More Price Increase Throughout the Ink, Pigment Industries

More Price Increase Throughout the Ink, Pigment Industries

Due to further cost increases in key ingredients necessary for printing inks, ink and pigment manufacturers have announced numerous price increases of their own during the past two months. These include the following:

• Flint Group North America announced a 7 percent price increase on energy curable inks and coatings used in sheetfed and offset web printing. New prices took effect on all products ordered in the U.S. and Canada on or after May 1, 2011, subject to existing contracts.

“Energy curable ink costs are affected on many fronts,” said Doug Labertew, vice president product management and strategy. “From pigments to additives to the highly functional materials that give energy curable products their performance properties, raw material costs are on the rise.”

• Flint Group North America announced price increases on color and black inks used in conventional newspaper and directory printing. New prices took effect May 1, 2011, subject to existing contracts:

“The raw materials used to make newspaper inks have experienced very significant increases in global demand,” said Norm Harbin, business director, newspaper inks. “Competing industries, including tires, for example, are more attractive for many raw material suppliers. And growing markets like China are absorbing a much larger portion of the available supply. Spiking crude oil costs are a strong cost driver as well, but just one of many.”

• Due to the continued raw material cost pressure, Flint Group had to further increase prices of all packaging and narrow web inks in North America effective May 1, 2011.

In light of the repetitive and continuing raw material cost increases since January, it is necessary to increase the price of inks and coatings. Water- and solvent-based products increased 8 percent, with the exception of white, which increased 10 percent. All energy-cured products increased 5 percent. Violet 23 continues to be in short supply with rising costs. It will be addressed on a customer by customer basis.

• Due to the serious shortages and unrelenting cost increases of the raw materials needed to manufacture white and Violet 23 packaging inks, effective May 1, 2011, Sun Chemical raised prices on all solvent- and water-based white inks by a minimum of 10 percent, and all solvent- and water-based Violet 23 inks by a minimum of 20 percent, dependent upon the amount of Violet 23 in the specific color formulation.

“We regret needing to take this action, but the shortages and subsequent increases in costs for the raw materials needed to manufacture packaging inks have placed us in a position where we need to raise our prices,” said Tony Renzi, vice president of product management, liquid inks, North American Inks, Sun Chemical. “Despite these challenges placing us in this regrettable position, we are looking for ways to work closely with our supply chain partners on controlling our own costs.”

• Siegwerk increased gross invoice prices for all products for paper and board applications. An average of 8 percent price increase will be applied on the following product groups:

• Clears (overprint and extender varnishes, primers, etc.)

• Colors and metallics

• Others

Except in the cases below, where a fixed price increase per kg will be made:

• Whites – 0.25€/kg

• Violets (with Pigment Violet 23) – 4.75€/kg

Due to the volatility of the raw material market, the prices will remain valid until end of August 2011. It is Siegwerk’s intention to review prices on a quarterly basis and to inform customers in advance about changes.

• Sun Chemical Performance Pigments will raise global prices on quinacridone and perylene high performance pigments by up to 10 percent and Violet 23 pigments by $4.50 per pound.

“For over two years, the cost of raw materials and supply instability has significantly impacted the pigment industry and there is no short-term relief in sight for these rising costs – forcing us to increase prices,” said Mehran Yazdani, vice president, marketing, Sun Chemical Performance Pigments. “We regret needing to take this action, but as is occurring in virtually every industry today, current market conditions demand we adjust our prices. We will continue to look for cost reduction and productivity gains to offset the rising costs of raw materials.”

• Evonik Carbon Black GmbH, a subsidiary of Evonik Industries, Essen, is increasing prices for carbon black pigments and pigments preparations Corasol, Derussol, Tack and Colcolor by up to 10 percent for deliveries to locations in Europe, Asia and ROW. Prices for shipments in the NAFTA region will be increased by up to 0.12 US$/lbs.